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The Companies Act, 2013, introduced a significant regulatory framework for Corporate Social Responsibility (CSR) in India under Section 135, which marked a paradigm shift in how companies approach social responsibility. The CSR provisions under this Act are designed to make it mandatory for certain companies to contribute to social welfare activities, promoting sustainable and inclusive growth. Section 135 of the Companies Act, 2013, specifically deals with CSR, and the Companies (Corporate Social Responsibility Policy) Rules, 2014 were notified to provide detailed guidance for its implementation. The key objective of these rules is to ensure that businesses play a proactive role in nation-building by addressing social, environmental, and economic issues. According to the CSR Rules, every company meeting certain financial thresholds is required to constitute a CSR Committee and spend a prescribed percentage of its profits towards CSR activities. The applicability criteria are that a company must meet any one of the following conditions during the financial year: 1. A net worth of ₹500 crore or more. 2. An annual turnover of ₹1000 crore or more. 3. A net profit of ₹5 crore or more. The CSR Committee must consist of at least three directors, with at least one being an independent director in the case of a listed company. The Committee is responsible for formulating and recommending a CSR policy, monitoring its implementation, and suggesting the amount of expenditure to be incurred on CSR activities. The CSR Policy should clearly outline the activities to be undertaken by the company _____ ________ ______ _________ ______ _________ _________ _______ _____ ____ __________.
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